UAW Condemns GOP for Scuttling Bailout

[Neil D]

United Auto Workers President Ronald A. Gettelfinger lashed out against Senate Republicans a day after a congressional compromise on an auto industry bailout failed, accusing the lawmakers of trying to "pierce the heart of organized labor."

Gettelfinger, at a news conference yesterday in Detroit, welcomed a statement from the White House that said the administration was willing to use funds targeted for bailing out the financial system to help the autoworkers. But he repeated his insistence that bankruptcy isn't an option, saying failure at any one automaker would force firms across the industry to collapse.

The Republican Senate proposal sought to cut UAW wages, bringing them in line -- or at "parity" -- with what workers earn at foreign-owned, non-unionized plants in the United States. A failure in Congress to reach an agreement on the wage-cut proposal Thursday night doomed the $14 billion industry rescue package.

"They believe workers are expendable and wages mean nothing," Gettelfinger said.

But tough talk isn't winning over the American public, said Gary N. Chaison, professor of industrial relations at Clark University in Worcester, Mass.

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"Congress sees which way the wind is blowing and they see that autoworkers are not popular with the public," he said.

Auto executives drew the ire of many Americans when they came to Washington on private jets seeking aid for the industry. Workers, with their extensive retiree benefits, salary and job protections, have not fared much better.

Gettelfinger said the "parity" the Republican senators were seeking is difficult to calculate given the differing wage rates among the foreign vehicles manufacturers in the United States. Furthermore, he said, the pay cut wouldn't do much to lift Detroit.

"If we work for nothing, it wouldn't help them limp into January," he said.

He said the union already had worked to cut health-care payments for retirees and job protections that try to ensure workers an income when plants close.

Gettelfinger blamed the Republican senators who represent states with foreign-auto plants of trying to put the American companies at a disadvantage. He said lawmakers were allowing Southern states to subsidize foreign automakers with hundreds of millions of dollars to build factories, while turning their backs on Detroit.

"They use taxpayer dollars to subsidize the competition," he said. "We can't compete like this as a country."

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[Dr. Shane]

Sounds like the UAW is afraid the gravy train maybe coming to an end. The union pretty much destroyed the railroad industry in America and now it is trying to do a repeat with the auto industry.

[Neil D]

Since labor is 10% of a cost of a vehicle, and since Ford and Gm and Chrysler production of a vehicle is more efficient than Toyota, explain your comments...

[olger]

I want to see the UAW broken, and the workers, many of whome are decent people, reform their work ethic with the Manufacturer - leaving the union bosses (thugs) out of it.

oG

[Dr. Shane]

Auto plants in the south, where unions are not strong, are profitable plants. The only plants that are dragging manufacturers down are those located in heavily unionized states.

[Dr. Shane]

Since labor is 10% of a cost of a vehicle, and since Ford and Gm and Chrysler production of a vehicle is more efficient than Toyota, explain your comments...

GM pays more for the health-care of their employees and retirees than they pay for steel to build their cars. That alone is a major expense.

[Woody]

Originally Posted By: Neil D

Since labor is 10% of a cost of a vehicle, and since Ford and Gm and Chrysler production of a vehicle is more efficient than Toyota, explain your comments...

GM pays more for the health-care of their employees and retirees than they pay for steel to build their cars. That alone is a major expense.

Wait till Obama's Health Care plan kicks in. Oh Boy.

[Neil D]

Auto plants in the south, where unions are not strong, are profitable plants. The only plants that are dragging manufacturers down are those located in heavily unionized states.

So, in your view, it can't be the fact that Detroit is mismanaging the car industry? It HAS to be the UAW.....

Someone asked Factcheck.org to explain the price of a UAW worker and why they were so expensive? They researched it out, and said that the difference between the union and non-union member is $9. and that the $9 extra went to the non-union member. IOWs, the non-union member was making more than the UAW worker. Since the labor costs of an auto is 10% of the price, and since non-union labor costs more than Union Labor, how is it that Detroit can't make a decent profit?

[Neil D]

Originally Posted By: Neil D

Since labor is 10% of a cost of a vehicle, and since Ford and Gm and Chrysler production of a vehicle is more efficient than Toyota, explain your comments...

GM pays more for the health-care of their employees and retirees than they pay for steel to build their cars. That alone is a major expense.

"The average GM, Ford and Chrysler worker receives compensation – wages, bonuses, overtime and paid time off – of about $40 an hour. Add in benefits such as health insurance and pensions and you get to about $55. Another $15 or so in benefits to retirees (known as "legacy costs") brings the number to roughly $70. "

As I said, labor is 10% of a cost of a vehicle....

[Dr. Shane]

So, in your view, it can't be the fact that Detroit is mismanaging the car industry? It HAS to be the UAW.....

The American auto plants in the South are doing fine and yet they are managed by the same folks from Detroit. The plants that are losing money are the UAW plants. Let's be honest, this is a UAW bailout, not a Big 3 auto makers bailout.

Health-care benefits add $1,200 to the cost of each of GM's cars (is that 10%?) and $215 to the cost of each Toyota. UAW workers are allowed to retire with full benefits after 30 years of service. (So if they start working at 18 they retire at 48)

The UAW problem extends beyond the Big 3. The unionized plants must buy much of their material like rubber, steel, glass, etc from other unionized plants. Thus the UAW not only increases the direct cost of labor but also the cost of materials. Non-union plants in the South are free to purchase tires, windows and steel from non-union factories which decreases the cost of material going into the product.

[nuff sed]

Google in Ford Camacari Plant and see what you get....Fascinating!

[Bravus]

Part of the problem, though, is that Toyota has been working in the US for a lot less years than the Big 3, so it has a lot less retired workers to support. Unless you're in favour of simply robbing retired workers of the entitlements they earned, there's no quick and simple way of slashing employee costs for the American manufacturers.

[Dr. Shane]

I believe Toyota has a 401K retirement plan for their employees.

I am not so much against the bailout as I think we need to have a good plan in place on how it is going to work. I am not sold on the idea that the bailout will save the Big 3. I do believe we need to do what it takes to save them. I am just not convinced a bailout is the solution. Maybe it is. Bankruptcy may save them and a bail-out may just prolong the inevitable.